Sorting Out The Wreckage Of Stock Slide

LOST MOMENTUM

April 7, 1997

By Guy HalversonStaff writer of The Christian Science Monitor

NEW YORK

Whether bull or bear, many stock investors did some refiguring last week about the state of the market. Some are digging in for a long hibernation. Others are starting to think about bargain hunting amid the wreckage of sell-off.

But most Wall Street analysts say the mood has clearly changed. The bull market's upward momentum has been broken with a "correction" of about 10 percent, and few expect a quick rebound.

On Friday, April 4, the Dow Jones industrial average closed up 48.72 points, at 6526.07. But the Dow shed 214.52 points for the week.

The mainstream bear now looks at more interest rate rises and signs of weak corporate profits and sees the Dow retreating to 5600.

While bulls are shaken, they have not yet caved in. The positive view: A generally strong economy and the Fed's tight rein on inflation mean the market will resume its six-year upward march.

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